Acquiring Accurate Numbers to Analyze Deals

from Guelph, Ontario

posted 8 months ago

Hey guys! After listening to the podcast and reading as many books as I can get my hands on, I'm taking Brandon and Josh's advice (which is always awesome coming from them) to analyze deals in my area to get a sense of the market and what constitutes as a great deal.

However, when I look at properties on sale there usually isn't enough information numbers-wise for me to accurately crunch the numbers. Obviously sales price and general info on the property is easily accessible, but I always have trouble calculating monthly expenses and mortgage rates.

Should I just be calling companies in the area that provide the services I'd be using, as well as a mortgage broker, and get the quotes from them?

If so, would they even want to talk to me seeing as though I don't have a property yet and am just calling to find out about prices?

Any advice on how you guys get these numbers yourself would really be appreciated, thanks!

Rental Property Investor from Everywhere, USA

replied 8 months ago

Hi @Jackson Miller - welcome to BP! Yes call a few banks to get ideas of terms to finance an investment property. Then use this as a basis for financing, and run the numbers yourself online with a mortgage calculator.

Then of other expenses, talk to other investors in your area, get a sense of what they spend managing properties. There are a lot of "rule of thumbs" you can use like budgeting 5-15% for Maintenance, and 5-15& for capex. But talking with other local investors will help and is why joining a local REIA can be really important.

from Guelph, Ontario

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